Home Extension Loan at Affordable Interest Rates

What is a Home Extension Loan?

Looking for some more room as your family's needs grow? Aditya Birla Capital Home Extension Loan is here to fund the additional space you need with flexible repayment options

● Borrow for home extensions like new rooms, upper floors, and other renovations linked to expansion.
● Flexible EMIs and repayment tenure to match your financial condition
● Quick processing and minimal documentation for a hassle-free experience

Features & benefits of Home Extension Loan

Competitive Interest Rates

Enjoy the benefit of competitive interest rates, which will lower the cost of borrowing and ensure that your EMIs remain low for the duration of the loan period.

No Prepayment Charges

Pay off your loan partly or fully even before the loan period comes to an end without having to pay any prepayment fees,

Convenient Doorstep Services

Avail doorstep services for all your loan documentation and verification needs

Easy Repayment Options

Select from various repayment plans and EMI options as per your requirements and financial capabilities.

Quick and Transparent Processing

Experience a hassle-free loan process with minimum documentation, faster approval, and full transparency throughout the process.

Extended Loan Tenure

Consider a long-term repayment period in order to divide your total loan amount into small monthly instalments.

Balance Transfer

Transfer your present home loan in order to get better rates of interest or lower EMIs, based on your eligibility.

Home Extension Loan Calculators

VIEW ALL CALCULATORS

HOME LOAN AMOUNT

Tenure (1 to 30 Years)

Rate of Interest (7 to 25%)

I CAN PAY EMI OF

Tenure (1 to 30 Years)

Rate of Interest (7 to 25%)

Your estimated EMI amount

₹ 0

Total Interest

₹ 0

Total Payout

₹ 0

Apply Now

Salaried
Self Employed

CURRENT AGE

MONTHLY INCOME

YOUR CURRENT MONTHLY OBLIGATIONS

You are eligible for a loan of

₹ 0*

For a tenure of0 years

EMI @ 9% Interest Rate

₹ 0*

Apply Now

Who can apply for a Home Extension Loans?

Find out if you are eligible to apply for a Home Extension Loans

Salaried

Self Employed Professional

Self Employed Non-Professional

Reasons To Get a Home Extension Loan

Competitive Interest Rates

Get great interest rates on home extension loans that ensure savings on your monthly payments and over the loan's duration.

No Prepayment Charges

Enjoy the freedom to make additional payments or prepay your floating-rate home loan without incurring any prepayment charges.

Convenient Doorstep Services

Get a stress-free experience with a simplified documentation process that streamlines loans and personalised service.

Easy Repayment Options

Select between EMIs or structured repayments, depending on what aligns more conveniently with your needs and budget.

Quick and Transparent Processing

Benefit from a fast and transparent loan processing system, ensuring a smooth and efficient experience.

Extended Loan Tenure

Choose a loan tenure of up to 20 years*, allowing you to spread out your repayments comfortably over a longer period.

Balance Transfer

Seamlessly transfer your existing home loan to ABHFL and take advantage of lower interest rates without any hassle.

5 Things To Consider Before Taking A Home Extension Loan

STEP

Check your eligibility for a home extension loan

STEP

Ensure agreement of the co-owners, if any

STEP

Your income, credit score, and outstanding debt affect the interest rate

STEP

Determine affordability and the optimal loan tenure for you

STEP

Ensure all the property title documents are in order

Interest Rates Available

Find out the interest rates applicable to you.

For Salaried/SEP

Loan Type	Interest
Floating/Fixed	7.75% p.a. to 15.50% p.a.

For Self Employed Non Professional

Loan Type	Interest
Floating/Fixed	8.00% p.a. to 16.00% p.a.

Home Extension Loan Eligibility and Documents

Before opting for a Home Improvement Loan, ensure you qualify and have the necessary documents.

Eligibility Criteria for Home Extension Loan

NationalityIndian citizen
Minimum age for applying21 years
Maximum age at loan maturity60 years for Salaried & 70 years for Self-employed
Good credit historyA CIBIL Score of 650 or higher is ideal
EmploymentSalaried or self-employed

Note - This is an indicative list that may change based on your actual loan application.

Upto 30 Lakhs

30 Lakhs to 75 Lakhs

More than 75 Lakhs

90%

80%

75%

Disclaimer - All loans will be at the sole discretion of ABHFL.

Home Extension Loan Fees and Charges

TRANSACTIONS	CHARGES
Loan Processing/Administration Fee	• Home Loans : Up-To 1% Of The Loan Amount • Other Loans : Up-To 2% Of The Loan Amount
Part Payment/Pre-Closure Charges:	• Floating Rate Loans Given To Individuals, Where All Applicants And Co-Applicants Are Individuals: Nil • Home Loans (Other Than Floating Rate Home Loans To Individuals): 2% Of Principal Outstanding
Other Charges: • Default Penal Interest Rate / Non Conformance With Any Covenants / Stipulated Conditions	24% P.A. I.E. 2% Per Month

TRANSACTIONS	CHARGES
NACH Failure Charges	₹750/- per instance
Accrued Interest	As applicable based on actual delayed status or as communicated by the lender from time to time
CERSAI Charges	• When the facility amount is equal to ₹5 Lakh or lesser – ₹50 per property • When the facility amount is greater than ₹5 Lakh – ₹100 per property
Pre-closure Quotes	₹1,000/- per instance
Request for Any Copies of Any Collateral	₹750/- per instance
Duplicate Statement/Repayment Schedule	₹200/- per instance

TRANSACTIONS	CHARGES
Stamp Duty, Legal and other Statutory Charges, Insurance Premium, Creation Charges with ROC	As per actual, where applicable

TRANSACTIONS	CHARGES
Cheque Return Charges	₹750/- per instance
CIBIL Report Retrieval Fee	• ₹50/- per instance for consumer and • ₹500/- for commercial cibil
Loan Re-Schedulement (at the discretion of ABHFL) Charges	0.50%
NOC Issuance Charges	₹500/-
Cancellation Charges (if any)	4.00% of the loan amount disbursed
Swap Charges (Fixed or semi-fixed rate to floating and vice-versa)	2% of the loan outstanding
Fees and Other Charges	Applicable GST @ 18% will be levied

Disclaimer: The above charges constitute the rack rate for all customers. Actual charges for any customer, if different, will be as communicated at the time of loan sanction and disbursal and will be subject to changes from time to time.

Home Extension Loan Documents Documents

Proof of Identity and Address

Passport/ Aadhaar Card/ Voter's ID/ Driving License/ Job Card issued by NREGA/ Registration certificate/ PAN card (PAN Card only as identity proof)

Proof of Income

Salary slip for the last 3 months showing all deductions and Form 16

Bank statement showing salary

Latest 6 months

Proof of Other Income:

Rental receipts or documents showing receipt of income

Property Documents:

Copy of Title documents and approved sanction plan

Proof of Identity and Address

Passport/ Aadhaar Card/ Voter's ID/ Driving License/ Job Card issued by NREGA/ Registration certificate/ PAN card (PAN Card only as identity proof)

Proof of Income

IT Returns or financial documents for the last 2 years and computation of income certified by a CA for the last 2 years

Bank statement where income is credited

Latest 6 months

Proof of Other Income:

Rental receipts or documents showing receipt of income

Property Documents:

Copy of Title documents and approved sanction plan

Customer Satisfaction Stories

Mr. Mohammad Moosa Azmi

Aditya Birla Housing Finance Customer

Seamless onboarding experience and great support provided by the Relationship Manager during the documentation process.

Mr. B. Narsimulu

Aditya Birla Housing Finance Customer

Hyderabad, India

Mr. Kiran Narhari Deshmukh

Aditya Birla Housing Finance Customer

I appreciate the online documentation process which helped in ease of my loan process. I could get loan information through WhatsApp and other digital platforms.

Mr. Vikram Balu Gavali

Aditya Birla Housing Finance Customer

Belapur, India

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FAQs on Home Extension Loan

A home extension loan is a type of financing specifically designed to assist homeowners in expanding their living space by adding rooms, floors, or other structures to their existing homes. These loans typically offer competitive interest rates and flexible repayment terms, making them an attractive option for homeowners who want to enhance their living space without the need to relocate.

Attractive Interest Rates: ABHFL offers competitive interest rates on home extension loans, allowing you to finance your home improvement project without incurring excessive interest costs. These lower interest rates translate into more affordable monthly payments, making it easier to manage your finances while transforming your living space.

Loan Tenure up to 20 Years*: ABHFL provides flexible loan tenure options of up to 20 years*, giving you the freedom to spread out your repayments comfortably over a longer period. This extended tenure reduces the financial burden of your monthly EMIs, making your home extension dreams more achievable and manageable.

Quick & Transparent Processing: ABHFL is committed to providing a quick and transparent loan approval process for your home extension loan application. You'll receive regular updates on the progress of your application, ensuring you stay informed and confident throughout the process. The efficient processing minimises delays and gets you the funds you need to start your home extension project promptly.

No Prepayment Charges for Floating-Rate Home Loans Given to Individuals: ABHFL allows you to make additional payments towards your home extension loan without incurring any prepayment charges. This flexibility empowers you to reduce your loan balance faster and save on interest costs if your financial situation improves.

Attractive Balance Transfer Option Available: If you have an existing home loan with another lender, consider transferring your balance to ABHFL and take advantage of the competitive interest rates. The balance transfer process is simple and hassle-free, allowing you to consolidate your loans and potentially save significant amounts of money over the loan term.

Doorstep Services: ABHFL understands the value of your time and convenience. That's why we offer personalised doorstep services to streamline the loan application process. Our dedicated team will guide you through every step, ensuring a smooth and stress-free experience from the comfort of your home.

To apply for an ABHFL home extension loan, you can follow these steps:

Step 1: Visit the ABHFL website and download the home extension loan application form.

Step 2: Fill in the application form completely and accurately.

Step 3: Attach the required documents, such as your KYC documents, income proof, property documents, and NOC from your existing lender (if applicable).

Step 4: Submit the duly filled-out form and required documents to your nearest ABHFL branch.

Step 5: An ABHFL representative will review your application and contact you to discuss your loan requirements.

Step 6: Once your loan is approved, you will need to sign the loan agreement and complete the necessary paperwork.

You can also apply for an ABHFL home extension loan online or by calling the ABHFL customer care number (1800 270 7000). For any assistance, you can also write to us at care.housingfinance@adityabirlacapital.com

Pros of a home extension loan:

Increased Living Space: Home extension loans provide homeowners with the financial means to expand their living space, addressing overcrowding issues and creating additional rooms for specific needs.

Enhanced Property Value: Expanding a home can potentially increase its market value, making it a worthwhile investment for future resale.

Tailored to Homeowner's Needs: Home extension loans can be customised to suit the specific needs and preferences of the homeowner, allowing them to create the living space they desire.

Competitive Interest Rates: Lenders often offer competitive interest rates for home extension loans, making them a cost-effective way to finance home improvement projects.

Flexible Repayment Terms: Repayment terms for home extension loans can be tailored to fit the borrower's financial situation, allowing for manageable monthly payments.

Cons of a home extension loan:

Additional Debt: Taking out a home extension loan adds to your existing debt burden, which can increase your overall financial obligations.

Potential for Cost Overruns: Home improvement projects often encounter unexpected costs, which can strain your budget and potentially exceed the initial loan amount.

Impact on Credit Score: A new loan can temporarily impact your credit score, especially if you have multiple credit inquiries within a short period.

Lengthy Approval Process: The loan application and approval process for home extension loans can sometimes be lengthy, potentially delaying the start of your project.

There are no direct tax implications of a home extension loan. However, the interest that you pay on your home extension loan is tax deductible under Section 24(b) of the Income Tax Act, 1961. This means that you can deduct the interest that you pay on your home extension loan from your taxable income, which can reduce your tax liability. The maximum amount of interest that you can claim as a tax deduction is ₹ 2 lakhs per financial year, and the tax deduction on the principal repayment is up to ₹ 1.5 lakhs under Section 80C. If the value of the property is less than ₹ 45 lakhs, then you can avail further tax benefits of up to ₹ 1.5 lakhs on the interest paid under Section 80EE of the Income Tax Act. This benefit can be availed over and above the existing exemption of ₹ 2 lakhs under Section 24(b).